Business Owners Policy (BOP)

Insurance companies and their professional agents often combine coverage from a number of policies into a package sold as a single contract. One of these is the BOP, an acronym for Business Owners Policy. This policy is used for covering business properties including the buildings.

A Business Owners Policy is a single insurance policy for small businesses that is used to cover major property and liability from risks. Some of the risks covered by the BOP include business interruption insurance that covers the income loss in the event of a disaster. Another risk that is covered by the BOP involves additional costs that have been incurred in the event of forceful business relocation.

The basic BOP however does not cover all the risks that can be incurred by a business owner. This means that you will need additional coverage in the event of other risks. Some of these risks may include extra expenses and risks associated with the use of electronic commerce as well as the loss of income in the event of a hacker or malware attack. Data loss recovery expenses also have to be covered in the additional coverage.

BOP is not an insurance policy for all manner of businesses. In order to fit the criteria for this policy you have to be a small to medium sized business company. The insurance companies will also put other additional factors into consideration. These factors include the size of your business premises, the type of business company that you have as well as the liability boundaries affecting your business. Insurance covers also consider the offsite activities affiliated with your company. BOP premiums are also dependent the potential fire hazards, security , location, financial stability as well as the infrastructure affiliated with your business.

Types of Coverage for Small Sized Businesses

Most businesses will need at least four insurance types in order to be up and running. These are:

Liability Insurance – This type of insurance package protects you in the event of a lawsuit against your business. The insurance will help cover the costs for damages should your business be found liable. The cover extends to the attorney fees, legal research fees, and medical fees in the event of injuries within your property and so on. The expenses will be covered as per the policy limits.

Property Insurance – This package covers you in the event of property loss or damage from fire or theft. It covers the basic infrastructures as well as personal property such as the business inventory, equipment and computers as well as raw materials.

Business Auto Insurance – The insurance package is used for vehicles owned by a business. This particular insurance will cover up to the policy limits, any injuries, as well as damage of property, arising from the business vehicles.

Workers Compensation insurance – This is a mandatory insurance cover for all employers depending on the number of employees that you have. The package usually covers expenses incurred in the event of employee injuries or illnesses and helps replace a portion of lost wages.

It is important for you to get the best BOP coverage for your building and business property in order to avoid future financial losses that may cripple you.

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